Adjustment Processes for Exchange Economies and Noncooperative Games

In: Lecture Notes in Economics and Mathematical Systems 402

Abstract

The first part of this book deals with tatonnement processes in different general equilibrium models. The standard price exchange model, an international trade model and an economy with production are considered. Theadvantage of these processes, in contrast to the standard Walras process, is that their convergence is guaranteed under weak conditions. The second part of the book deals with game theory. More special, with the computation of Nash equilibria in noncooperative games. It is shown how to find a perfect equilibrium and illustrated that the described method is superior to the Lemke-Howson method and can be used for finding more equilibria